§ 1678 — Powers of the authority

New York § 1678

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: Dormitory Authority
• Art. 8: Miscellaneous Authorities

Text

§ 1678. Powers of the authority. The authority shall have power\n 1. To sue and be sued;\n 2. To have a seal and alter the same at pleasure;\n 3. To acquire in the name of the state by purchase or condemnation,\ngift or devise real property or rights of easement on terms necessary or\nconvenient for its corporate purposes; to acquire, hold and dispose of\npersonal property for its corporate purposes;\n 4. To make by-laws for the management and regulation of its affairs;\n 5. To appoint officers, agents and employees and fix their\ncompensation, provided, however, that the appointment of the executive\ndirector shall be subject to confirmation by the senate in accordance\nwith section twenty-eight hundred fifty-two of this chapter;\n 6. To make contracts and to execute all instruments necessary or\nconvenient;\n 7. To prepare or cause to be prepared plans, specifications, designs\nand estimates of costs for the construction and equipment of dormitories\nand appurtenant facilities for the institutions specified in section\nsixteen hundred seventy-six, and from time to time to modify such plans,\nspecifications, designs or estimates;\n 8. By contract or contracts or by its own employees to construct,\nacquire, reconstruct, rehabilitate and improve, and furnish and equip,\ndormitories and necessary and usual attendant facilities for\nstate-operated institutions and statutory and contract colleges under\nthe jurisdiction of the state university of New York pursuant to\nagreement with the state university construction fund created by section\nthree hundred seventy-one of the education law;\n 9. To maintain, reconstruct and operate such dormitories until the\ncost thereof and the outstanding bonds thereon have been liquidated;\n 10. To fix and collect rentals and other charges for the use of\ndormitories and judicial facilities, court facilities or combined\noccupancy structures or any parts thereof; to contract with holders of\nits bonds to fix such rentals and charges at rates at least sufficient\nto pay for all costs of operation, maintenance and repairs of the\ndormitories and judicial facilities, court facilities or combined\noccupancy structures, and the interest on and amortization of, or\npayment of its bonds issued to finance dormitories, judicial facilities,\ncourt facilities or combined occupancy structures; to provide by\ncontract for the promulgation, by the appropriate officer or body, in\nrelation to any institution described in subdivision two of section\nsixteen hundred seventy-six of this title, of such reasonable and proper\nrules and regulations as may be necessary to assure the maximum use of\nthe facilities of any dormitory at all times;\n 11. To borrow money and to issue negotiable bonds or notes and to\nprovide for the rights of the holders thereof;\n 12. To do all things necessary or convenient to carry out the purposes\nof this authority.\n 13. In connection with court facilities or combined occupancy\nstructures:\n (a) To acquire by purchase, condemnation, gift, devise, lease or other\nagreement such real property or an interest therein as may be necessary\nor convenient for the acquisition, construction, reconstruction,\nrehabilitation, improvement or provision of court facilities or combined\noccupancy structures;\n (b) To prepare or cause to be prepared plans, specifications, designs\nand estimates of costs for the design, construction, reconstruction,\nrehabilitation or improvement of court facilities or combined occupancy\nstructures, and the equipping and furnishing thereof;\n (c) To prepare or cause to be prepared a facility design and\nperformance plan with each participating municipality relating to court\nfacilities and combined occupancy structures in any case where the\nauthority and the participating municipality have agreed that the\nauthority will award contracts for the design and construction of the\nproject. Such plan shall set forth the terms and conditions associated\nwith the construction management process, including, but not limited to,\nprovisions relating to the selection of architects, construction\nconsultants, construction managers and contractors, the relative\nresponsibilities of the authority and the participating municipality\nwith respect to the initial project budget and the court facilities\nprogram, the preparation of working drawings and budgets, the project\nconstruction process, beneficial occupancy including formal\nnotifications, punch lists and acceptance by all parties, notification\nof construction completion, project close-out, and the commencement of\nresponsibility for maintenance of the facility. Such plan shall also\ninclude provisions relating to the responsibility of the authority to\nrequire appropriate performance and surety bonds, the diligent pursuit\nby the authority of remedies against architects, contractors and\nsureties deemed to be in default in the performance of their\nobligations, and, generally, the management of the construction process\nin a professional manner in accordance with prevailing construction\nindustry standards. The authority shall submit the facility design and\nperformance plan to the chief administrator for submission to the court\nfacilities capital review board in accordance with section sixteen\nhundred eighty-c of this chapter;\n (d) To design, construct, reconstruct, rehabilitate or improve court\nfacilities or combined occupancy structures and to enter into contracts\nto cause court facilities or combined occupancy structures to be\ndesigned, constructed, reconstructed, rehabilitated or improved;\n (e) To enter into leases, subleases or other agreements with\nparticipating municipalities in connection with court facilities and\njointly with participating municipalities and other persons, firms,\nassociations, corporations or agencies, including public bodies, in\naccordance with section sixteen hundred eighty-b of this article;\n (f) To sell, convey, lease, sublease or otherwise transfer any real\nproperty or interest therein held by the authority to any person, firm,\nassociation, corporation or agency, including a public body, for the\npurpose of constructing or otherwise providing thereon a combined\noccupancy structure, provided that, simultaneously therewith, the\nauthority enters into an agreement for the reconveyance, purchase,\nlease, sublease or other acquisition of the court facilities to be\ncontained in such combined occupancy structures.\n Any contract undertaken or financed by the dormitory authority for any\nconstruction, reconstruction, rehabilitation or improvement of any court\nfacilities or combined occupancy structures shall comply with the\nprovisions of sections one hundred one and one hundred three of the\ngeneral municipal law.\n 14. To adopt resolutions providing for a program of self-insurance to\npay for uninsured losses incurred by the dormitory authority by reason\nof a deductible feature in a policy or policies of insurance or to\nprevent a default in the compliance with any provision of any agreement,\nlease or resolution of the authority relating to or authorizing the\nissuance of obligations of the authority. When such program is approved\nby the superintendent of financial services of the state of New York,\nsuch program shall for all purposes of compliance by the dormitory\nauthority with any provision of an agreement, lease or resolution of the\nauthority relating to or authorizing the issuance of obligations of the\nauthority be deemed to be an insurance policy issued by an insurance\ncompany authorized to do business in the state of New York. The approval\nof the superintendent shall be based upon such standards as he shall\nfrom time to time determine to be appropriate in light of the said\nprogram, including but not limited to reasonable requirements regarding\nthe amounts and kinds of coverage provided and the minimum financing\nmaintained, and provided that the superintendent shall determine that\nsuch program will not be prejudicial to the best interests of the people\nof this state.\n 15. The authority shall, notwithstanding any other law, have the power\nto mortgage, pledge or assign any real or personal property of any\ndormitory or board of cooperative educational services school facility\nas and to the extent authorized by any agreement or lease between the\nauthority and any educational institution as defined in section sixteen\nhundred eighty of this title or any board of cooperative educational\nservices to secure any and all liabilities of such educational\ninstitution or board of cooperative educational services under such\nagreement or lease in respect of such dormitory or board of cooperative\neducational services facility not theretofore paid or discharged, or\nother real or personal property of the authority. Any such mortgage,\npledge or assignment by the authority, unless otherwise provided\ntherein, shall be superior to any right an educational institution or a\nboard of cooperative educational services may have with respect to the\nproperty subject to such mortgage, pledge or assignment, and upon\nforeclosure of any such mortgage or enforcement of any such pledge or\nassignment any such right shall be extinguished.\n 16. To acquire and to enter into commitments to acquire any federally\nguaranteed security and to pledge or otherwise use any such federally\nguaranteed security in such manner as the authority deems in its best\ninterest to secure or otherwise provide a source of repayment on any of\nits bonds issued on behalf of any hospital designated as an educational\ninstitution in section sixteen hundred eighty of this title or to enter\ninto any appropriate agreement with any hospital designated as an\neducational institution in section sixteen hundred eighty of this title\nwhereby the authority may make a loan to any such hospital for the\npurpose of acquiring and entering into commitments to acquire any\nfederally guaranteed security. Any agreement entered into pursuant to\nthis subdivision may contain such provisions which are deemed necessary\nor desirable by the authority for the security or protection of the\nauthority or the holders of such bonds; provided, however, that the\nauthority, prior to making any such acquisition, commitment or loan,\nshall first determine, and shall first enter into an agreement with any\nsuch hospital or any other appropriate institution or corporation to\nrequire, that the proceeds derived from the acquisition of any such\nfederally guaranteed security will be used for the purpose of providing\nor refinancing any dormitory for any hospital designated as an\neducational institution in section sixteen hundred eighty of this title,\nincluding any facility, real property, equipment and appurtenant and\nrelated facilities.\n 17. To make and undertake commitments to make education loans to any\nindependent institution for higher education located in this state,\nrecognized and approved by the regents of the university of the state of\nNew York, which provides a course of study leading to the granting of a\npost-secondary degree, for the purpose of enabling any such institution\nfor higher education to make student loans to any student attending such\nindependent institution for higher education, the parents of any such\nstudent or both for the purpose of financing the cost of attendance by\nsuch student at such independent institution for higher education, to\nmake and to commit to make direct loans to a student or the parents of a\nstudent or both for the purpose of financing the cost of attendance by\nsuch student at a public institution for higher education, and to\npurchase, acquire or take by assignment or otherwise student loans from\nsuch an independent institution for higher education. Each loan and\npurchase of a student loan by the authority authorized by this\nsubdivision shall be premised upon an agreement, agreements, or\nsupplements thereto, between the authority and such institution for\nhigher education, such student or the parents of the student or both,\nwhich agreement, agreements, or supplements thereto, may make provisions\nas to payment, security, payment of any expenses or costs of the\nauthority and any other matters deemed appropriate by the authority.\n All provisions of this title not inconsistent with the provisions of\nthis subdivision shall be applicable with respect to any bonds of the\nauthority issued to obtain funds for any purpose authorized under this\nsubdivision, and with respect to the powers of the authority and any\nsuch institution for higher education provided, however, that the use of\nany such powers in order to effectuate the purpose of section sixteen\nhundred seventy-nine of this chapter be expressed by guidelines subject\nto the review of the advisory committee pursuant to paragraph ten of\nsection sixteen hundred seventy-nine of this chapter. Bonds of the\nauthority issued for the purposes of this subdivision shall be deemed to\nbe issued for the financing and construction of a project within the\nmeaning of section fifty-one of this chapter.\n 18. To make and undertake commitments to make HEAL education loans to\nany independent institution for higher education located in this state,\nwhich is an eligible institution pursuant to title IV, part C, of the\n"Health Professions Educational Assistance Act of 1976", as now or\nhereafter amended, for the purpose of enabling any such institution to\nmake HEAL student loans, to make and to commit to make HEAL direct loans\nto an eligible student attending a public or independent institution for\nhigher education, and to purchase, acquire or take by assignment or\notherwise HEAL student loans, and to sell and commit to sell HEAL direct\nloans, HEAL education loans and HEAL student loans purchased, acquired\nor taken by assignment or otherwise by the authority to the extent\nnecessary to assure the marketability of and the adequacy of the\nsecurity for the bonds of the authority. Each loan and purchase of a\nHEAL student loan by the authority authorized by this subdivision shall\nbe premised upon an agreement, agreements, or supplements thereto,\nbetween the authority and such institution for higher education or such\nstudent, which agreement, agreements, or supplements thereto, may, to\nthe extent permitted by federal law and regulations, make provisions as\nto payment, security, payment of any expenses or costs of the authority\nand any other matters deemed appropriate by the authority. The authority\nshall be deemed to be and is authorized to act as an eligible lender as\ndefined in title IV, part C, of the "Health Professions Educational\nAssistance Act of 1976", as now or hereafter amended, for purposes of\nthe health education assistance loan program authorized thereunder.\n All provisions of this title not inconsistent with the provisions of\nthis subdivision shall be applicable with respect to any bonds of the\nauthority issued to obtain funds for any purpose authorized under this\nsubdivision, and with respect to the powers of the authority and any\nsuch institution for higher education, provided, however, that the use\nof any such powers in order to effectuate the purpose of sections\nsixteen hundred seventy-nine and sixteen hundred seventy-nine-a of this\nchapter be expressed by guidelines subject to the review of the advisory\ncommittee pursuant to subdivision ten of section sixteen hundred\nseventy-nine of this chapter. Bonds of the authority issued for the\npurposes of this subdivision shall be deemed to be issued for the\nfinancing and construction of a project within the meaning of section\nfifty-one of this chapter.\n 19. By contract or contracts or by its own employees to design,\ncontruct, acquire, reconstruct, rehabilitate and improve, and furnish\nand equip, or otherwise provide judicial facilities.\n All provisions of this title not inconsistent with the provisions of\nthis subdivision shall be applicable with respect to any bonds of the\nauthority issued to obtain funds for any purpose authorized under this\nsubdivision, and with respect to the powers of the authority; provided,\nhowever, that the authority shall not undertake the provision of\njudicial facilities authorized by this subdivision unless the governing\nbody of any county, within the tenth judicial district, that does not\ncontain a city for whose use judicial facilities are to be provided\nconsents thereto.\n 20. To enter into a contract or contracts with the commissioner of\nhealth for the purpose of implementing the health facility restructuring\npool pursuant to section twenty-eight hundred fifteen of the public\nhealth law, and to receive, hold, invest and pay out moneys deposited in\nthe restructuring pool. In connection therewith, the authority shall\nexercise all of its powers under article eight of this chapter.\n 21. (a) To enter into one or more agreements with the state university\nof New York to provide financial assistance on behalf of the state, as\nprovided in subdivision eight of section six thousand three hundred four\nof the education law, to the local sponsors of community colleges for\nthe design, acquisition, construction, reconstruction, rehabilitation or\nimprovement of one or more facilities for locally sponsored community\ncolleges and the furnishing or equipping of such facilities. Each such\nagreement shall provide for annual payments to the dormitory authority\nfrom the state aid or other financial assistance provided to the local\nsponsor of such community college and paid into the community college\ntuition and instructional fund pursuant to paragraph (iii) of\nsubdivision two of section ninety-seven-p of the state finance law, and\ncontain such other terms and conditions as may be agreed upon by the\nparties thereto, including, but not limited to, provisions relating to\nthe establishment of reserve funds and indemnities. Each such agreement\nshall be subject to the approval of the director of the budget.\n (b) Any such agreement entered into pursuant to this subdivision may\nprovide that the provisions thereof shall remain in force and effect\nuntil the issue of bonds of the dormitory authority to which it relates,\ntogether with interest thereon, interest on any unpaid installments of\ninterest and the fees and expenses of the dormitory authority, are fully\nmet and discharged, and any payments to be made by the state may be\npledged by the dormitory authority to secure such bonds.\n (c) No agreement entered into pursuant to this section shall be\nconstrued to limit or diminish the power of the dormitory authority with\nrespect to a locally sponsored community college with respect to\nproviding construction related services in connection with the\nconstruction, reconstruction, improvement, renovation, development or\nexpansion of locally sponsored community college facilities.\n 23. To make equipment loans pursuant to section sixteen hundred\nseventy-nine-b of this article and, in connection with such equipment\nloans, to enter into all necessary or useful agreements with respect to\nsuch loans.\n 24. To acquire bonds, notes or other obligations of any school\ndistrict or city of the state issued to finance or refinance school\ndistrict capital facilities and school district capital equipment and to\nmake loan commitments and loans to school districts and to cities for\nsuch purposes, and to enter into arrangements with school districts and\ncities for the purchase of such bonds, notes or other obligations.\n * 25. (a) To form one or more subsidiaries for the purpose of\nlimiting the potential liability of the authority when exercising the\npowers and duties conferred upon the authority by this article in\nconnection with the exercise of remedies by the authority against any\nborrower regulated under article twenty-eight of the public health law\nthat has defaulted in its obligations under its loan agreement or\nmortgage with the authority and for which an event of default has been\ndeclared by the authority. Each such subsidiary created pursuant to this\nsubdivision may exercise and perform one or more of the purposes,\npowers, duties, functions, rights and responsibilities of the authority\n(other than the issuance of indebtedness) in connection with real and\npersonal property with respect to which the authority holds or held a\nmortgage, security interest or other collateral interest including: (i)\nbidding for, taking, holding, selling, conveying, assigning or\ntransferring title to such property; (ii) entering into leases,\nsubleases, operating agreements, security agreements, loan agreements or\nother encumbrances or arrangements with regard to such property and\nacting in a manner consistent with the rights, obligations or\nresponsibilities of the owner of such property pursuant to such\nagreements or encumbrances; (iii) assuming any indebtedness or other\nliabilities secured by such property. Notwithstanding any other\nprovision of law to the contrary, but in all instances subject to the\nprovisions of any contract with bondholders, the transfer of title to\nany such subsidiary or any other actions taken by the authority or such\nsubsidiary to enforce the authority's rights under the mortgage,\nsecurity interest or other collateral interest or to protect, acquire,\nmanage or dispose of the property shall be deemed to be a corporate\npurpose of the authority and shall not impair the validity of any bonds,\nnotes or other obligations of the authority to which the mortgage,\nsecurity interest or other collateral interest relates.\n (b) Each such subsidiary authorized by paragraph (a) of this\nsubdivision shall be established in the form of a public benefit\ncorporation by executing and filing with the secretary of state a\ncertificate of incorporation which shall identify the authority as the\nentity organizing such subsidiary and set forth the name of such\nsubsidiary public benefit corporation, its duration, the location of its\nprincipal office and its corporate purposes as provided in this\nsubdivision and which certificate may be amended from time to time by\nthe filing of amendments thereto with the secretary of state. Each such\nsubsidiary shall be organized as a public benefit corporation, shall be\na body politic and corporate, and shall have all the privileges,\nimmunities, tax exemptions and other exemptions of the authority. The\nmembers of each such subsidiary shall be the same as the members of the\nauthority and the provisions of subdivision two of section sixteen\nhundred ninety-one of this title shall in all respects apply to such\nmembers when acting in such capacity.\n (c) Nothing in this subdivision shall be construed to impose any\nliabilities, obligations or responsibilities of any such subsidiary upon\nthe authority and the authority shall have no liability or\nresponsibility therefor unless the authority expressly agrees to assume\nthe same.\n (d) Each such subsidiary created pursuant to this subdivision shall be\nsubject to any other provision of this chapter pertaining to\nsubsidiaries of public authorities.\n (e) Notwithstanding any other provision of law to the contrary,\nincluding but not limited to title five-A of article nine of this\nchapter, the Atlantic Avenue Healthcare Property Holding Corporation is\nhereby authorized and empowered to sell, exchange, lease, transfer and\nconvey certain real property located at 483-503 Herkimer Street,\n1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,\nall in Brooklyn, New York as directed by the commissioner of New York\nstate division of homes and community renewal, upon such terms and\nconditions as such commissioner may fix and determine.\n Such sale, exchange, lease, transfer and conveyance shall be\nconsistent with and made pursuant to a plan to increase access and\nquality of health care services and preventative care and create\naffordable housing approved by the commissioner of New York state\ndivision of homes and community renewal, the commissioner of health and\nthe director of the division of the budget to transform the Central\nBrooklyn region. Such plan shall include any combination of initiatives\nintended to: increase access to open spaces, transform health care by\nincreasing access and quality of health care services and preventative\ncare, create affordable housing, improve youth development, prevent\ncommunity violence, address social determinants of health, and provide\nany ancillary services thereto.\n Notwithstanding the foregoing, no such sale, exchange, transfer, lease\nor conveyance shall be permitted pursuant to this section, unless in the\nopinion of bond counsel to the authority, such sale, exchange, transfer,\nlease or conveyance does not impair the tax-exempt status of any\noutstanding bonds or other obligations, if any, issued by the authority\nto finance or refinance the subject property. For the purposes of such\nopinion, the valuation of such property being sold, exchanged,\ntransferred, leased or conveyed may reflect the terms and conditions set\nforth in the plan.\n (f) The description in paragraph (e) of this subdivision of the lands\nto be transferred and conveyed is not intended to be a legal\ndescription, but is intended only to identify the premises to be\nconveyed. As a condition of transfer and conveyance, the Atlantic Avenue\nHealthcare Property Holding Corporation shall receive an accurate survey\nand description of the lands generally described in paragraph (e) of\nthis subdivision, which may be used in the conveyance thereof.\n * NB Effective until July 1, 2026\n * 25. (a) To form a subsidiary for the purpose of limiting the\npotential liability of the authority when exercising the powers and\nduties conferred upon the authority by article eight of this chapter in\nconnection with the exercise of remedies by the authority against North\nGeneral Hospital, an eligible secured borrower (as defined in chapter\nfive hundred ninety of the laws of two thousand two) located in the\nborough of Manhattan, New York that has defaulted in its obligations\nunder its loan agreement or mortgage with the authority and for which an\nevent of default has been declared by the authority. Such subsidiary\ncreated pursuant to this subdivision may exercise and perform one or\nmore of the purposes, powers, duties, functions, rights and\nresponsibilities of the authority other than the issuance of\nindebtedness, in connection with real and personal property with respect\nto which the authority holds or held a mortgage, security interest or\nother collateral interest including: (i) bidding for, taking, holding,\nselling, conveying, assigning or transferring title to such property;\n(ii) entering into leases, subleases, operating agreements, security\nagreements, loan agreements or other encumbrances or arrangements with\nregard to such property and acting in a manner consistent with the\nrights, obligations or responsibilities of the owner of such property\npursuant to such agreements or encumbrances; (iii) assuming any\nindebtedness or other liabilities secured by such property.\nNotwithstanding any other provision of law to the contrary, but in all\ninstances subject to the provisions of any contract with bondholders,\nthe transfer of title to such subsidiary or any other actions taken by\nthe authority or the subsidiary to enforce the authority's rights under\nthe mortgage, security interest or other collateral interest or to\nprotect, acquire, manage or dispose of the property shall be deemed to\nbe a corporate purpose of the authority and shall not impair the\nvalidity of any bonds, notes or other obligations of the authority to\nwhich the mortgage, security interest or other collateral interest\nrelates.\n (b) Such subsidiary authorized by paragraph (a) of this subdivision\nshall be established in the form of a public benefit corporation by\nexecuting and filing with the secretary of state a certificate of\nincorporation which shall identify the authority as the entity\norganizing such subsidiary and set forth the name of such subsidiary\npublic benefit corporation, its duration, the location of its principal\noffice and its corporate purposes as provided in this subdivision and\nwhich certificate may be amended from time to time by the filing of\namendments thereto with the secretary of state. Such subsidiary shall be\norganized as a public benefit corporation, shall be a body politic and\ncorporate, and shall have all the privileges, immunities, tax exemptions\nand other exemptions of the authority. The members of such subsidiary\nshall be the same as the members of the authority and the provisions of\nsubdivision two of section sixteen hundred ninety-one of this title\nshall in all respects apply to such members when acting in such\ncapacity.\n (c) Nothing in this subdivision shall be construed to impose any\nliabilities, obligations or responsibilities of such subsidiary upon the\nauthority and the authority shall have no liability or responsibility\ntherefor unless the authority expressly agrees to assume the same.\n (d) Such subsidiary created pursuant to this subdivision shall be\nsubject to any other provision of this chapter pertaining to\nsubsidiaries of public authorities.\n (e) Notwithstanding any other provision of law to the contrary,\nincluding but not limited to title five-A of article nine of this\nchapter, the Atlantic Avenue Healthcare Property Holding Corporation is\nhereby authorized and empowered to sell, exchange, lease, transfer and\nconvey certain real property located at 483-503 Herkimer Street,\n1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,\nall in Brooklyn, New York as directed by the commissioner of New York\nstate division of homes and community renewal, upon such terms and\nconditions as such commissioner may fix and determine.\n Such sale, exchange, lease, transfer and conveyance shall be\nconsistent with and made pursuant to a plan to increase access and\nquality of health care services and preventative care and create\naffordable housing approved by the commissioner of New York state\ndivision of homes and community renewal, the commissioner of health and\nthe director of the division of the budget to transform the Central\nBrooklyn region. Such plan shall include any combination of initiatives\nintended to: increase access to open spaces, transform health care by\nincreasing access and quality of health care services and preventative\ncare, create affordable housing, improve youth development, prevent\ncommunity violence, address social determinants of health, and provide\nany ancillary services thereto.\n Notwithstanding the foregoing, no such sale, exchange, transfer, lease\nor conveyance shall be permitted pursuant to this section, unless in the\nopinion of bond counsel to the authority, such sale, exchange, transfer,\nlease or conveyance does not impair the tax-exempt status of any\noutstanding bonds or other obligations, if any, issued by the authority\nto finance or refinance the subject property. For the purposes of such\nopinion, the valuation of such property being sold, exchanged,\ntransferred, leased or conveyed may reflect the terms and conditions set\nforth in the plan.\n (f) The description in paragraph (e) of this subdivision of the lands\nto be transferred and conveyed is not intended to be a legal\ndescription, but is intended only to identify the premises to be\nconveyed. As a condition of transfer and conveyance, the Atlantic Avenue\nHealthcare Property Holding Corporation shall receive an accurate survey\nand description of the lands generally described in paragraph (e) of\nthis subdivision, which may be used in the conveyance thereof.\n * NB Effective July 1, 2026\n * 26. To enter into a design and construction management agreement\nwith the department of environmental conservation, pursuant to which one\nor more facilities are to be designed, constructed, reconstructed,\nrehabilitated, improved, furnished or equipped for such department. Any\nsuch design and construction management agreement entered into pursuant\nto this subdivision shall provide for the following: the scope of design\nand construction management services to be provided by the authority,\nthe manner in which those services will be provided, the fees to be\ncharged by the authority and the sources of funds for the projects. No\ndesign-build contract as defined in chapter fifty-six of the laws of two\nthousand eleven shall be awarded pursuant to this subdivision.\n * NB Repealed April 1, 2027\n * 27. To enter into a design and construction management agreement\nwith the office of parks, recreation and historic preservation, pursuant\nto which one or more facilities are to be designed, constructed,\nreconstructed, rehabilitated, improved, furnished or equipped for such\noffice. Any such design and construction management agreement entered\ninto pursuant to this subdivision shall provide for the following: the\nscope of design and construction management services to be provided by\nthe authority, the manner in which those services will be provided, the\nfees to be charged by the authority and the sources of funds for the\nprojects. No design-build contract as defined in chapter fifty-six of\nthe laws of two thousand eleven shall be awarded pursuant to this\nsubdivision.\n * NB Repealed April 1, 2027\n 28. To enter into a construction management agreement with the New\nYork city housing authority, pursuant to which one or more facilities\nowned or operated by the New York city housing authority located in the\ncity of New York are to be constructed, reconstructed, demolished,\nimproved, modernized, renovated or expanded for such authority.\n * 29. Notwithstanding any law to the contrary, to establish a pilot\nprogram for the award of contracts up the maximum dollar amount\nspecified in paragraph (e) of this subdivision, for the procurement of\ngoods or services from, or for the construction, reconstruction,\nrehabilitation or improvement of facilities by, small businesses as\ndefined in section one hundred thirty-one of the economic development\nlaw and minority-owned and women-owned business enterprises as defined\nin section three hundred ten of the executive law, notwithstanding the\nexpiration of such section pursuant to subdivision (h) of section one\nhundred twenty-one of chapter two hundred sixty-one of the laws of\nnineteen hundred eight-eight, as amended, in accordance with the\nfollowing provisions:\n (a) Procurements made pursuant to this subdivision shall be governed\nby the authority's procurement policy and guidelines adopted pursuant to\nsection twenty-eight hundred seventy-nine of this chapter, with\nparticipation in the pilot program confined to small businesses, as\ndefined in section one hundred thirty-one of the economic development\nlaw, and minority-owned and women-owned business enterprises, as defined\nin section three hundred ten of the executive law.\n (b) Procurements made pursuant to this subdivision shall be designated\nas such by the authority, in its sole discretion, pursuant to\npre-established criteria contained in the authority's procurement and\npolicy guidelines described in paragraph (a) of this subdivision. Such\ndesignation shall be made prior to the advertisement and request for\nbids or proposals, and any such advertisement or request shall indicate\nthis designation clearly.\n (c) If the total number of parties responding and considered capable\nof meeting the specifications and terms of the advertisement and request\nfor bids or proposals is less than three, or if the authority determines\nthat acceptance of any bid or proposal will result in the payment of an\nunreasonable price, the authority shall reject all responses and\nwithdraw the designation made pursuant to paragraph (b) of this\nsubdivision.\n (d) Procurements made pursuant to this subdivision may be undertaken\nin conjunction with section one hundred forty-seven of the state finance\nlaw authorizing a mentor-protege program to foster long-term\nrelationships between approved mentor firms and small business concerns\nand minority and women-owned businesses certified pursuant to article\nfifteen-A of the executive law.\n (e) The total value of contracts awarded pursuant to this subdivision\nshall not exceed the greater of twenty million dollars or five percent\nof the value of all contracts awarded by the authority in a given fiscal\nyear.\n The authority shall submit a report, no later than September\nthirtieth, two thousand twenty-four, and annually thereafter, to the\ngovernor, the temporary president of the senate and the speaker of the\nassembly regarding procurements made pursuant to this subdivision. Such\nreport shall include a description of each procurement made pursuant to\nthis subdivision, information regarding the procurement process for each\nsuch procurement contract, including the list of responding entities\nthat demonstrated the capability to meet the specifications and terms of\nthe procurement made pursuant to this subdivision if such procurement\ndid not use lowest responsible bidding, the project identification\nnumber and a description for each such project, the completion date or\nprojected completion date as applicable for each such project, the\nstatus of each such project, the total cost or projected cost and cost\nmodifications of each such project procured pursuant to this\nsubdivision, indication of whether the party awarded a contract pursuant\nto this subdivision served as a general contractor or subcontractor in\nfulfilling the contract, and the total dollar value of monies paid to\nminority-owned and women-owned business enterprises pursuant to this\nsubdivision itemized by year and including the total dollar values for\nthe five years preceding the respective annual report's release date.\nFor annual reports any new procurements and changes during the period\ncovered by the report shall be identified separately.\n * NB Repealed July 1, 2027\n 30. To enter into one or more agreements with the office of cannabis\nmanagement, the cannabis control board, or the private debt or equity\nfund, selected pursuant to subdivision thirty-two of this section, in\nwhich the state or any state agency, public authority, public benefit\ncorporation, or division thereof has invested and is formed for the\nlimited purpose of funding the capital costs associated with\nestablishing conditional adult-use cannabis retail dispensaries for\noperation by social equity licensees duly licensed pursuant to article\ntwo of the cannabis law, for the following purposes:\n (a) (i) To acquire by lease or sublease such real property or any\ninterest therein as may be necessary or convenient for the construction,\nreconstruction, rehabilitation, improvement, or provision of conditional\nadult-use cannabis retail dispensaries for operation by social equity\nlicensees, as agent, and (ii) to acquire by purchase or other agreement,\npersonal property or interest therein as may be necessary for the\nacquisition, construction, reconstruction, rehabilitation, improvement\nor provision of such dispensaries, whether as principal or agent;\n (b) To prepare or cause to be prepared, whether as principal or agent,\nplans, specifications, designs, and estimates of costs for the design,\nconstruction, reconstruction, rehabilitation, improvement, furnishing or\nequipping of conditional adult-use cannabis retail dispensaries for\noperation by social equity licensees;\n (c) To design, construct, reconstruct, rehabilitate, or to cause the\ndesign, construction, rehabilitation or improvement of, whether as\nprincipal or agent, conditional adult-use cannabis retail dispensaries\nfor operation by social equity licensees and to enter into contracts to\ncause such facilities to be designed, constructed, reconstructed,\nrehabilitated, improved, furnished, or equipped;\n (d) To enter, as lessor or as agent for the lessor, into leases,\nsubleases, or other agreements with the social equity licensees\noperating for the conditional adult-use cannabis retail dispensaries;\nprovided that (i) the authority shall only enter in lease agreements as\nagent of the private debt or equity fund selected pursuant to\nsubdivision thirty-two of this section, (ii) any general terms of such\nlease agreement, and any material deviations or changes therefrom, are\napproved by the office of cannabis management; and\n (e) To enter, as lender or as agent to the lender, into a non-recourse\nloan or other agreements with the social equity licensees operating the\nconditional adult-use cannabis retail dispensaries, provided that any\ngeneral terms of such non-recourse loan agreements, and any material\ndeviations or changes therefrom, are approved by the office of cannabis\nmanagement and that the terms of the non-recourse loan agreement do not\ninclude a penalty for early termination but will allow for the inclusion\nof a make-whole provision and shall not, at the time the loan is\nestablished, exceed the prime lending rate plus one-half the interest\nrate specified under subdivision one of section fourteen-a of the\nbanking law, nor include terms or conditions that would allow for an\nequity position in the social equity licensee's conditional adult-use\ncannabis retail dispensary business or that would entitle a share in, or\nclaim to, any revenue or profit generated by such business.\n 31. (a) To form one or more subsidiaries for the purpose of limiting\nthe potential liability of the authority when exercising the powers and\nduties conferred upon the authority by subdivision thirty of this\nsection in connection with certain work performed on behalf of the\noffice of cannabis management, the cannabis control board, or the\nprivate debt or equity fund in which the state or any state agency,\npublic authority, public benefit corporation, or division thereof has\ninvested and has been selected pursuant to subdivision thirty-two of\nthis section. Such subsidiary created pursuant to this subdivision may\nexercise and perform one or more of the purposes, powers, duties,\nfunctions, rights and responsibilities of the authority other than the\nissuance of indebtedness, in connection with real and personal property\nwith respect to which the authority holds title or a leasehold interest,\nin its own name or as agent for the titleholder or leaseholder\nincluding, but not limited to: (i) entering into leases, subleases, or\nother arrangements with regard to such property and acting in a manner\nconsistent with the rights, obligations or responsibilities of the\nowner, landlord or tenant of such property pursuant to such lease or\nsublease agreements; (ii) servicing non-recourse loan payments; (iii)\nfurnishing property management services; and (iv) providing general\noperational and administrative support services.\n (b) Such subsidiary authorized by paragraph (a) of this subdivision\nshall be established in the form of a public benefit corporation by\nexecuting and filing with the secretary of state a certificate of\nincorporation which shall identify the authority as the entity\norganizing such subsidiary and set forth the name of such subsidiary\npublic benefit corporation, its duration, the location of its principal\noffice and its corporate purposes as provided in this subdivision and\nwhich certificate may be amended from time to time by the filing of\namendments thereto with the secretary of state. Such subsidiary shall be\norganized as a public benefit corporation, shall be a body politic and\ncorporate, and shall have all the privileges, immunities, tax exemptions\nand other exemptions of the authority. The members of such subsidiary\nshall be the same as the members of the authority and the provisions of\nsubdivision two of section sixteen hundred ninety-one of this title\nshall in all respects apply to such members when acting in such\ncapacity.\n (c) Nothing in this subdivision shall be construed to impose any\nliabilities, obligations, or responsibilities of such subsidiary upon\nthe authority and the authority shall have no liability or\nresponsibility therefor unless the authority expressly agrees to assume\nthe same.\n (d) Such subsidiary created pursuant to this subdivision shall be\nsubject to any other provision of this chapter pertaining to\nsubsidiaries of public authorities.\n 32. (a) (i) To select a private debt or equity fund formed for the\nsole purpose of funding the capital costs, including closely related\nancillary and administrative costs, associated with establishing\nconditional adult-use cannabis retail dispensaries for operation by\nsocial equity licensees deemed to be eligible by the office of cannabis\nmanagement for financing through such fund or related costs, provided\nthat any partnership agreement between the fund and the authority, shall\nbe subject to the written approval or resolution of the cannabis control\nboard, the board of the dormitory authority, and the director of the\ndivision of the budget, and the selection of such general partner shall\nbe made in consultation with the office of cannabis management.\n (ii) The organizational structure and investment policy of the\nselected fund and the provisions of the partnership agreement shall\nsatisfy the following parameters and requirements:\n (1) The fund shall have a public policy committee composed of the\nchair of the cannabis control board, executive director of the office of\ncannabis management, and the president of the authority, or their\nrepresentatives, who shall guide the decisions of the selected fund to\nachieve the public policy goals of the state, which includes providing\nadvice and direction to the fund where matters implicate public policy\nand confirming the fund's adherence to its public purpose, which\nincludes compliance with stated objectives or mission of the cannabis\nlaw and the marihuana regulation and taxation act, generally and more\nspecifically, to provide social equity conditional adult-use cannabis\nretail dispensary licensees with the opportunity of acquiring\ncommercially viable retail operations;\n (2) Such committee shall:\n (A) review and approve of the fund's investment policy statement and\nany changes thereto;\n (B) review and approve any changes to the use and distribution of\ninvestment funds;\n (C) review and approve the fund's strategic plan, particularly those\npertaining to the investor class, the establishment, management, and\nliquidation of investments by the fund;\n (D) monitor the fund's risk profile, investment activity, and\nperformance;\n (E) approve the maximum amount of promised return on investment,\nmanagement fees, and compensation of the general partner;\n (F) review and approve any changes or amendments to the fund's\norganizational structure, partnership agreements, and the fund manager\nor servicer's agreement to ensure that they are consistent with the\nfund's public purpose;\n (G) take reasonable steps, at the direction of the office of cannabis\nmanagement, to provide geographic equity and representation in\nestablishing such conditional adult-use cannabis retail dispensaries for\noperation by social equity licensees, to the extent practicable, in\nsupport of the public purpose of the fund and further, at the direction\nof the office of cannabis management that the site selection for such\ndispensaries comports with the requirements of the cannabis law and the\nmarihuana regulation and taxation act, and its rules and regulations\ngoverning the location of conditional adult-use cannabis dispensaries;\nand\n (H) confirm that any real property leases and loan agreements issued\nby or on behalf of the fund shall be provided to social equity\nlicensees, duly licensed pursuant to article two of the cannabis law;\n (3) The general partner and the fund shall to the extent allowable by\nsection one of article five of the state constitution, authorize the\ncomptroller of the state, or the comptroller's legally authorized\nrepresentatives, to access, examine, or audit the accounts and books of\nthe fund including its receipts, disbursements, contracts, investments,\nand any other items directly relating to its financial standing and\ncooperate with any such financial examination or financial audit on an\nannual basis. The general partner shall agree to cause the key officers\nto be available to discuss the fund and the partnership and its\nactivities at the time of the audit;\n (4) The general partner shall agree to cause the key officers to be\navailable to discuss the fund and the partnership and its activities at\nthe request of the public policy committee;\n (5) Any real property subleased out by the fund to a social equity\nlicensee shall be at the same rate on which the fund has leased such\nproperty;\n (6) The fund shall not be authorized to borrow any money or to incur\nany indebtedness, including guarantees, except when approved by the\npublic policy committee;\n (7) The fund shall not be voluntarily terminated early without the\nprior consent of the public policy committee;\n (8) The fund shall have a conflict-of-interest policy approved by the\npublic policy committee;\n (9) Any loan agreement the fund enters into with social equity\nlicensees shall be a non-recourse loan and shall allow prepayment of the\ndebt without any penalty imposed by the fund but will allow for the\ninclusion of a make-whole provision and shall not, at the time that the\nnon-recourse loan is established, exceed the prime lending rate plus\none-half the maximum interest rate specified under subdivision one of\nsection fourteen-a of the banking law;\n (10) The fund shall not accept more than two hundred million dollars\nin total investment over the course of its life and the state's\ncontribution to the fund shall not exceed fifty million dollars; and\n (11) The fund shall not take any equity positions in, issue equity\nloans to, or enter into revenue or profit sharing agreements with any\nsocial equity adult-use cannabis retail dispensary business or include\nany terms and conditions in an agreement with such business to that\neffect; the fund shall also not include any excessive penalties within\nthe loan agreements; and\n (12) Any other requirement as the dormitory authority may deem\nappropriate, in consultation with the office of cannabis management, or\nthe cannabis control board.\n (b) (i) After the funding of the private debt or equity fund as\nprovided pursuant to this subdivision, the authority shall prepare an\nannual report beginning on December thirtieth, two thousand twenty-two\nand annually thereafter, which report shall include, but not be limited\nto:\n (1) the number of conditional adult-use cannabis retail dispensaries\nassisted by the authority pursuant to this subdivision;\n (2) the geographic distribution of sites designated by the office of\ncannabis management and prepared by the authority for conditional\nadult-use cannabis retail dispensaries for operation by licensed social\nequity businesses; and\n (3) any other such data and information, including information about\nsubsidiary or subsidiaries created pursuant to subdivision thirty-one of\nthis section.\n (4) Additionally, for the first report, the authority shall report on\nthe procurement and selection of the general partner.\n (ii) Such report shall be published on the authority's website and\npresented to the governor, the temporary president of the senate and the\nspeaker of the assembly, no later than December thirtieth, two thousand\ntwenty-two and annually thereafter; and\n (iii) The authority shall further submit a copy of the partnership\nagreement between the fund and the authority, to the governor, the\ntemporary president of the senate, and the speaker of the assembly no\nlater than fifteen days after such agreement has been fully executed.\n